Stamp Duty Has Changed: Here’s What You’d Actually Owe as a First-Time Buyer

If you’ve been researching buying your first home and you’ve come across stamp duty figures that seem lower than expected, there’s a reason for that and it’s worth knowing about before you budget for your purchase.

In April 2025, the stamp duty thresholds that had been temporarily raised since September 2022 came to an end. The rules changed, and first-time buyers are among those most affected. A lot of the information still circulating online reflects the old thresholds which means some buyers are arriving at the mortgage conversation with an outdated idea of what they’ll owe. Here’s a clear, up-to-date picture.

What Is Stamp Duty and Who Pays It?

Stamp Duty Land Tax (SDLT) or just stamp duty is a tax you pay to the government when you buy a property in England or Northern Ireland above a certain price. It’s paid as a lump sum on completion, which means it needs to be factored into your upfront costs alongside your deposit, solicitor fees, and survey.

The amount you owe depends on the purchase price of the property, whether you’re a first-time buyer, and whether it’s your main residence or an additional property.

The good news for first-time buyers is that you still get a meaningful relief compared to those who have owned before. The threshold at which stamp duty kicks in for you is higher than it is for a home mover.

The Current Thresholds for First-Time Buyers

As of 1 April 2025, first-time buyers pay no stamp duty on the first £300,000 of a property’s purchase price. On the portion between £300,001 and £500,000, the rate is 5%.

If the property costs more than £500,000, first-time buyer relief no longer applies and standard stamp duty rates are charged on the full purchase price instead. So in practical terms:

·       Up to £300,000 - no stamp duty at all

·       £300,001 to £500,000 - 5% on the amount above £300,000

·       Above £500,000 - standard rates apply, with no first-time buyer discount

What Does That Mean in Real Numbers?

This is where it becomes concrete. You only pay stamp duty on the portion of the price that sits above the threshold, not on the whole amount.

If you buy a property for £280,000, you pay nothing.

If you buy for £350,000, you pay 5% on the £50,000 above the threshold which is £2,500.

If you buy for £425,000, you pay 5% on £125,000 which is £6,250.

A first-time buyer purchasing at £425,000 now pays £6,250 in stamp duty, where previously they would have paid nothing under the old thresholds. That’s a significant difference and one that catches people out if they’ve been working from older figures.

Why Did the Thresholds Change?

The government temporarily raised stamp duty thresholds in September 2022 to support the housing market and make buying more affordable. That temporary arrangement ended on 31 March 2025, and the thresholds reverted to their previous levels.

It wasn’t a new tax. It was an old one returning. But the practical effect for buyers is the same, more stamp duty is now owed on properties above £300,000 than would have been the case a year or two ago.

There are no expected changes to the current stamp duty rates in 2026, so the April 2025 thresholds are the ones to plan around.

What About Scotland and Wales?

Scotland and Wales use different systems entirely. Scotland has Land and Buildings Transaction Tax, and Wales has Land Transaction Tax. The rates and thresholds are different from England, so if you’re buying outside England or Northern Ireland, it’s worth checking the specific rules for where you’re purchasing.

The Bit That Trips Most People Up

The single most common misunderstanding is thinking stamp duty applies to the whole purchase price. It doesn’t. You only pay on the portion above the threshold.

So on a £320,000 property, you’re not paying 5% of £320,000. You’re paying 5% of £20,000 which is £1,000. That’s a very different number, and knowing the distinction makes budgeting considerably more straightforward.

The second thing that catches people out is the £500,000 ceiling on first-time buyer relief. If the property you’re buying costs more than £500,000, the first-time buyer discount disappears entirely and standard rates apply to the full purchase price. For buyers in more expensive areas, particularly London, this is worth being aware of early.

Factor It In Early

Stamp duty is an upfront cost that needs to be ready at completion, it can’t be added to your mortgage in most circumstances. That means it needs to sit alongside your deposit in your savings, not be something you work out at the last minute.

If you’re budgeting for your first home, the simplest approach is to calculate your likely stamp duty bill as soon as you have a target purchase price in mind. That way, you know exactly how much you need to have ready on the day and there are no surprises when your solicitor confirms the figure.

How Endurance Mortgages Can Help

At Endurance Mortgages, we make sure every first-time buyer we work with has a clear picture of the full cost of buying, not just the mortgage payment, but everything that needs to be in place at completion, including stamp duty.

We’ll walk you through exactly what you’d owe based on the property you’re looking at, make sure your budget accounts for it properly, and help you plan your purchase from the ground up.

If you’re thinking about buying your first home and want a clear, honest breakdown of what it would actually cost, speak to Endurance Mortgages today.

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